Are you going to sell the property in Dubai for the first time? This guide to selling property in Dubai is all you need to facilitate the smooth transaction of what can be a nerve-wracking experience. Whether it’s your investment property, an apartment in Dubai, or a villa in Dubai that you want to place on the market, there are specific steps to sell property in Dubai that you have to take.
Understanding the Dubai Real Estate Market
You must know about market trends before you make your property available for sale. The Dubai real estate market fluctuates according to market demand, supply, and economic factors. House prices across sought-after communities, including Downtown Dubai Dubai Marina and Palm Jumeirah, function independently from developing neighbourhoods within Dubai South and Dubailand.
The Presentation of Property
Prioritising the best possible presentation of your property (having the property look as good as possible) maximises your opportunity to sell in a timely and profitable way. This maximises your potential for offers and the highest price for your property.
We suggest you attend to any cracks, defects, or maintenance problems before listing your property. We also advise that you spend money on a new coat of paint if necessary, a deep clean of the property, and a neat garden if it is a villa.
Buyers are not always the best at imagining and are not as experienced investors as sellers, so creating that emotional link with the property is essential. Purchasers might not appreciate how small some of the works are so it’s best to have them out of the way to present your property in the best light possible.
Conducting a Market Appraisal
Your estate advisor will visit your property to conduct a market appraisal. Proper valuation will significantly impact selling your property, so it is essential to get it right. Our agents will research to provide you with development-based, location-based, and type-of property guidelines on pricing and planning for the optimal sale of your home.
Procedure to Be Taken Upon Finalizing A Buyer
1. Signing Form F
Otherwise known as the Memorandum of Understanding (MOU), Form F refers to the sales agreement between the seller and buyer of property. The form incorporates all agreed-upon terms and conditions by both parties, such as property description, price, selling charges, parties’ names, date of transfer, and other essential contract elements.
The expired FORM F constitutes a binding contract once the initials of the seller and the buyer are signed by them in its presence, which is also present as an agent. Ensure proper reading of every detail and correctness of all details mentioned therein. At the signing of FORM F, the buyer also makes an advance or down payment against the purchase promise.
2. Acquiring the NOC
A No Objection Certificate (NOC) is mandatory to sell property in Dubai. The Dubai Land Department requires a NOC from the property developer to finalize the property sale. The NOC contains a statement by the developer that the seller settled all debt or liabilities against them and has no objections to the sale.
The NOC issuance charges differ from developer to developer. Typically, the charges are between AED 500 and AED 5,000. The NOC fee sums up the total property selling cost in Dubai. It usually takes five to seven working days to issue the NOC. Key documents to apply for the NOC are:
- The Title Deed/Oqood (off-plan properties).
- Your Emirates ID or passport with an active residency visa.
3. Copy of FORM F
Ownership Transfer at Dubai Land Department.
The final step for selling properties in Dubai is the ownership transfer. to transfer ownership, all parties involved, including the seller, the buyer, and the agent(s) need to go to the closest DLD trustee’s office and proceed with the following steps:
- The buyer pays the purchase price remaining amount.
- The DLD receives transfer Selling property in Dubai fees from the seller.
- The buyer is given a new Title Deed in their name.
Steps Required by Mortgage Sellers
In the case of a mortgage sale, the buyer needs to settle the seller’s mortgage before the NOC is issued. This requires the bank’s involvement. To save time, it is recommended that you start the process with your bank or lender on the day the MOU is signed. Upon request, they will issue a liability letter.
This typically takes around 2 weeks with some banks. There is a procedure for cash buyers to freeze the property at the Dubai Land Department Trustee office to safeguard the buyer against settling the seller’s mortgage. This typically takes around 2 weeks with some banks. There is a procedure for cash buyers to freeze the property at the Dubai Land Department Trustee office to safeguard the buyer against settling the seller’s mortgage.
Fee for Selling Property in Dubai
Below are the details regarding the agency fee for selling property in Dubai for ready, mortgaged and off-plan properties.
- NOC Fees: This is one of the advance charges that property sellers must pay to sell property in Dubai. The charges typically amount from AED 500 to AED 5,000.
- Agency Fees: The other fee to sell property within the Emirate is the agency fee. Selling agents in Dubai are typically charged 2% of the property’s sale price. The percentage of the sale price to be paid to the agent is specified in FORM A.
- Dubai Land Department Charges: The Dubai Land Department charge is generally 4% of the property’s sale value, which is usually divided between the buyer and seller. Nevertheless, the rate to be paid by each side is subject to the sale purchase agreement between the buyer and seller.
- Transfer of Ownership or Admin Fees: Transfer of ownership or admin fees is another significant fee to consider while selling property in Dubai. This fee is to be paid to the DLD’s registration trustee offices. The buyer pays the total amount or splits it between the buyer and seller, as agreed.
However, the transfer of ownership fee varies based on the sale price of the property:
- A property transfer fee costs AED 2,100 when its sales price falls below AED 500,000.
- The transfer fee amounts to AED 4,200 whenever the property sale value surpasses AED 500,000.
Fee to Sell Off-Plan Property in Dubai
For selling property off-plan in Dubai, it is required to inquire with the developers regarding all the terms and conditions that would apply to selling a property before its completion. Some fees may be charged upon selling a property before reaching a particular percentage of the payment plan. Nevertheless, such conditions differ with each developer.
Fee to Sell Mortgaged Property in Dubai
Besides the above-mentioned fee for selling Dubai properties, there will be another fee for mortgaged properties. These are:
- Early Settlement Fee: However, the sellers must pay only 1% of the outstanding amount or AED 10,000, whichever is lower than the early settlement fees.
- Blocking Charges: Another charge one must incur while selling mortgaged property in Dubai is the blocking charge. The seller pays the blocking charge for blocking the property in the buyer’s name before settling the seller’s mortgage. The charges tend to fall somewhere between AED 1,020 and AED 1,520.
- The release fee for a standard mortgage stands at AED 1,290, whereas the release fee for an Islamic mortgage amounts to AED 1,560.
Investment in Off-Plan Dubai Properties
Off-plan properties in Dubai provide decent investment prospects for customers purchasing property at lower rates. Eastern Housing UAE has several off-plan property options, where investors buy units before handover, usually at lower rates. Off plan properties Dubai investment enables customers to enjoy capital appreciation as the project construction continues. With the lively property market in Dubai, buying off plan properties in Dubai from good developers with the help of Eastern Housing UAE is a safe and lucrative investment.
Discover Investment Opportunities with Eastern Housing UAE
Eastern Housing UAE provides a range of off-plan properties in upscale locations for investment and usage purposes. Off-plan investors have a comprehensive range of choices available for off-plan properties in Dubai that promise significant returns and long-term appreciation. Check the Eastern Housing UAE website to learn more and explore the optimal real estate option for you.
Conclusion
Selling property in Dubai is a procedure that should be prepared for and followed up by a legal process. If the proper steps are taken and with assistance from professional people, sellers can quickly get through the process. Whether selling an available or off-plan property, knowledge about the market conditions and legal process will be helpful to close a successful deal.
FAQs
Is selling property in Dubai an easy process?
Yes, selling property in Dubai can be easy if you prepare correctly and adhere to the procedures outlined.
Can I sell my property independently in Dubai?
Although you can sell your home online independently, you should employ a licensed agent for their market knowledge and handling of legal formalities.
How long does it take to sell a property in Dubai?
The duration varies depending on property type, location, price, and market conditions.
Is the time right to sell real estate in Dubai?
Market conditions are not the same. Talk to a real estate expert to review current trends and advise on the best time to sell.
